FOOD-DELIVERY giant Deliveroo was urged to rethink how its workers are treated today after shares in the firm plummeted as it made its highly anticipated launch on the London Stock Exchange.

About £2 billion was wiped off its value as London traders raised concerns about the firm’s business model. 

Deliveroo was forced to price shares at the very bottom of its potential price range after a number of fund managers said that they would reject the listing, amid concerns over workers’ rights and its shareholder structure.

It opened trading at under £2.70 per share, having said that it would launch its shares as a publicly listed firm at £3.90 each. 

TUC general secretary Frances O’Grady said: “Deliveroo has no excuse for the way it treats its workers. It’s a damning indictment of the company’s exploitative business model that so many major funds have publicly shunned this float.

“Instead of setting aside hundreds of millions of pounds to fight legal battles on workers’ rights, Deliveroo should just treat its riders fairly and pay them properly.  

“Deliveroo will face greater scrutiny as a publicly listed company, with responsibilities to stakeholders. It needs to get started by treating its workers decently.” 

A strike was held during the company’s flotation today, with members of the IWGB’s couriers’ branch logging off from Deliveroo in protest againt the poor conditions experienced by workers. 

Union president Alex Marshall told the New York Times that the IWGB was simply asking for better rights for workers, including holiday pay and access to pension plans, as well as a guarantee that riders will earn the national minimum wage after costs.

Potential investors have also raised concerns over the share structure, whereby Deliveroo founder and chief executive Will Shu gets 20 votes per share, compared with one per share for other investors, giving him a majority position at shareholder votes.

Labour leader Sir Keir Starmer said that he would not buy shares in the firm. He said: “Our economy of the future has to be one which is about security at work, fairness at work, longer-term investment and skills.”

Ahead of the launch Mr Shu thanked “restaurants and grocers, riders and customers,” adding that the company will continue to invest in order to ensure growth and “provide riders with more work.”